Comparative advantage in production of a good occurs
A. when a country can produce that good using fewer resources than could other countries.
B. when a country can produce that good at a greater opportunity cost than could other countries.
C. when a country can produce that good at a lower opportunity cost than could other countries.
D. when a country has a greater supply of natural resources required to produce that good, compared to other countries.
Ans: C. when a country can produce that good at a lower opportunity cost than could other countries.
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An advantage monetary policy has over fiscal policy is that monetary policy
A) can be quickly changed and implemented. B) is coordinated with fiscal policy. C) is approved by the president of the United States. D) affects consumption expenditure and investment without impacting international trade. E) has no multiplier effects.
At the market clearing price
A) there is neither a shortage nor a surplus. B) quantity supplied equals quantity demanded. C) the supply and demand curves intersect. D) all of the above are correct.